National Republican., 1887-11-08
The Policy of Contraction Has Ceased.

A halt has been called by the adminlstra-
ton in its policy OF contraction. The lille
gal purchase OF bonds at premium and
the unlawful increase OF the national debt
has ceased. The meeting Of Congress Is
close at hand. The administration has
faced about and Ia expanding the currency.
II was time. Tue country was on the
verge Of panic. There was s23],0JO,0)o
more cash In the treasury than there was
when President Cleveland was inaugurAted.
There is tlO3, 100000 less OF bank notes In
circulation. Money could hardly be ob.
tained at any price. The best commercial
paper was discounted so heavily that no
business could survive II.
Like the horse lelch's daughter, the
money power was stlll crying for more,
more, more contraction. The aiminlstra
ton was giving II. The people plead In
vain for expansion. The approaching olec
tions aud the warnings Of the politicians
produced the desired effect; aud the ap
proach OF Congress will force the eontinu.
ance Of the expansion policy.
Months ago the NATIONAL REPUBLICAN,
showed how the surplus in the treasury
could be returned TO the channels Of trile
by loans upon United States bonds. Forced
by political exigencIes the administration
has adopted the plan, not so broadly and g.
much for the benefit Of the people as wa
suggested by the NATIONAL REPUBLICAN
but TO the extent that the danger OF inan-
cial panic is gone-gone because under the
order by which the banks are allowed to
draw money to the full value or above II Of
all bonds deposited, shows how money can
| be obtained as fast as needed.
Confidence Is restored, for dollar or q
dollar and ten cents can be drawn from
the treasury for any portion of the 5000,
OC0,0O0 Of United States four and half and
four per cent. bonds now out, which tht
people may ask for through the national
banks.
This means an abundance OF money II
the order Is not revoked.
Congress when it convenes should SEE
that the power to revoke It is taken away
from the Executive. The order, with somt
notifications, should be made into law.
The administration order only allows ma
tional banks to draw money on bonds
This forces ali financial business into tn,
hands OF the national bankers. The Law
should be that any man deposting bond
to the value OF $1,000 could get the valu
of the bonds in money, and two per cent
interest should be charged on the loan.
1t is as easy to open and keep an accoun
with "John Smith," of New York, as It /
with the First National Bank OF that city
1t is as easy to keep an interest account
where the parties have to pay interest Of
bonds, as 1t was when interest had to b
paid in the rebates made two month
ago. The United states 'hG:. piUuty o
bookkeepeis, aud can get more II 1t want
them.
The NATIONAL REPUBLICAN, congratu
latcs the country upon the fact that grel
danger has been averted-that there
every prospect Of a revival Of business, a
abundance Of money, aud prosperous times
and it congratulates the administratio
upon the sagacity which enabled 1t to Sc
the excellence anl case with which tn
money needed by the country could be re
leased from the vaults of the Treasury
upon the plan suggested BY tue NArIoNAl
REPUBLICAN.
Yet the administrat ion ought to be an
will be eeusured for contracting the cur
rency s233, 100000, and by SO doing causiu
contraction in the farm values OF thos
great crops by which the farmers lost
one year q sum equal to the contraction.
There should be no delay upon the par
of Congress in making this law, whc
creates an elastic currency, and prevent
the possibility Of money gorge in IL
Treasury.
; To this end the NATIONAL REPUDLTcA
pledges the people 1t will make constar
, battle for them uutn success is assured.
5 making this promise 1t is encouraged by /
success In bringing the country, as well
an opposing administration, to adopt
q plan of relief after daily struggle of mo
o than six months with this great fnanci
e question.
NJ BnNonets and Calling Guns for YorI